China's State Council will soon issue a policy to promote the development of the non-public economy at the end of this year.

Officials from the Development and Reform Commission revealed last Friday that this is the first legal document to promote the non-public economy in the past 50 years.

The Commission also said the policy will fully reflect the revised Constitution and treat the development of the private economy as an important source of support for the socialist economic system.

Earlier in March, China's top legislative body, the National People's Congress amended the Constitution to formally recognize the significant contribution that the private economy has made, and to protect the rights of private property.

After the founding of the People's Republic of China in 1949, China briefly allowed private enterprises, but it was banned again in the late 1950s as "the tail of capitalism."

16 years ago, amendments to the current constitution stipulated that the state permits the private economy to exist. In 1993, the term "socialist market economy" was coined.

In 1999, the constitution was amended to declare private business as an "important component" of the economy, not just a "complement" to the state sector.

(CRI.com November 29, 2004)